Indian Oil dropped as much as 3.5 percent, the most since
May 18, to 311 rupees, and was at 318 rupees at 10:50 a.m. in
Mumbai. Bharat Petroleum Corp. fell 1.8 percent to 613.40 rupees
and Hindustan Petroleum Corp. declined 2.2 percent to 372
rupees. The benchmark Sensitive Index lost 0.3 percent.

Oil rose for a third day in New York today after the
Organization of Petroleum Exporting Countries yesterday failed
to reach agreement on production targets for the first time in
at least 20 years and U.S. crude inventories fell more than
analysts forecast.

“OPEC’s decision not to raise output has an adverse effect
on the refiners and the overall Indian economy,” said Alex
Mathews, head of research at Geojit BNP Paribas Financial
Services Ltd. in Kochi. “The expected meeting on diesel prices
isn’t happening today and that compounds the problems for the
refiners, which aren’t in a very good situation anyway.”

Crude for July delivery rose as much as 73 cents to $101.47
a barrel in electronic trading on the New York Mercantile
Exchange and was at $101.32 at 1:32 p.m. Sydney time. The
contract yesterday climbed $1.65 to $100.74, the highest
settlement since May 31. Prices are up 36 percent the past year.

Fuel Prices

OPEC will maintain its current output for now, according to
Mohammad Aliabadi, acting Iranian oil minister and OPEC
president.

Indian state refiners lose 4.5 billion rupees on sales of
diesel, kerosene and cooking gas, according to a statement on
the oil ministry’s website. The prices of these fuels haven’t
been increased since gasoline was freed from government control
on June 26.

Indian Oil increased gasoline prices last month by 5 rupees
a liter in New Delhi, the most since June 2008 and the first
since Jan. 16.